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NEW QUESTION 33
Which of the following will you put into box 4?

A. Payment TermB. Time is of the EssenceC. SpecificationD. Subcontracting

Answer: B

Explanation:
The correct answers are as follows:

Getting help from another supplier to fulfil the order is subcontracting.

 

NEW QUESTION 34
Which of the following would not be considered acceptance of a contract term?

A. an invoiceB. silenceC. accepting a delivery of a product into the factoryD. a handshake

Answer: B

Explanation:
Silence is not acceptance. Acceptance can be in writing, verbal or implied by conduct. The three other options are ways in which a contract could be accepted by conduct. See p.8 of the study guide

 

NEW QUESTION 35
Which of the following will you put into box 5?

A. mediationB. adjudicationC. arbitrationD. litigation

Answer: B

Explanation:
The correct answers are as follows:

This is adjudication. Adjudication is the only option which has a specified timeframe.

 

NEW QUESTION 36
GoGo Ltd has contracted Reny Manufacturing to produce a bespoke piece of equipment for them. It is an asset and costs a significant amount of money. A contract is drawn up which states that GoGo Ltd has the right to terminate the contract at any time for any reason. Halfway through production of the asset, GoGo Ltd calls Reny Manufacturing to cancel the order. Reny Manufacturing has incurred many costs already. Can GoGo Ltd cancel the order?

A. yes- there is a termination clause in the contractB. yes- the order has not yet been delivered meaning that GoGo Ltd can cancel- there has been no transfer of ownershipC. no- the termination clause is unfairD. no- Reny Manufacturing will sue for damages

Answer: A

Explanation:
The correct answer is 3 - 'yes there is a termination clause in the contract'. In this scenario it would be immoral for GoGo Ltd to cancel, but it wouldn't be illegal. They have the right to use the clause that's been put into the contract. It's possible that Reny might sue for damages, but this doesn't prevent GoGo Ltd from cancelling the order (they might be okay with paying the damages). There is a very similar question to this in the exam. Termination clauses are discussed on p.134 - I recommend brushing up on this topic before the exam.

 

NEW QUESTION 37
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